Your feedback is essential to help us improve - click here to take our 3 minute survey.

3 tricks to getting cheaper car insurance

3 tricks to getting cheaper car insurance
Image source: Getty Images

Everyone wants cheaper car insurance, but how do you find a good quote? Well, it’s easier than you might think. Here are three ways you can find a better deal on your car insurance costs this time around.  

1. Shop around for cheaper car insurance

Sure, it’s tempting to let your car insurance renew automatically. There’s one problem with this approach, though: you probably won’t get the best deal. So, to make sure you’re getting value for money, it pays to shop around for more quotes. 

First, check out some price comparison websites, like MoneySuperMarket. They’re really simple to use. All you do is type in a few details, such as your car’s registration and your personal information, and you’ll get quotes from different insurance providers. You can then choose a quote you’re interested in and customise it to suit your specific needs. 

If the new quote is cheaper than your renewal quote, you can go ahead and switch providers. Otherwise, you can contact your existing provider and see whether they’ll match the new quote. Either way, you’ll probably get cheaper car insurance by shopping around.

2. Pay your car insurance annually

Some insurers charge you interest for paying monthly. So, although it’s sometimes convenient to pay your car insurance in monthly instalments, it’s not always the cheapest option.

Don’t have the cash to pay your car insurance all in one go? You might consider a 0% new purchase credit card. If you pay off the balance before the introductory period ends, you won’t pay any interest.

If you do decide to stick with monthly payments, it’s even more important to ensure you shop around for a good quote with the lowest interest rates. And, make sure you keep up the payments. Not only is it illegal to drive without insurance, but missed payments could damage your credit score. 

3. Choose the right time to renew your insurance

The very earliest you can renew your car insurance is 30 days before it expires. However, it doesn’t always pay to renew so early. In fact, there’s evidence that shows the cheapest time to renew is roughly 24 days before your insurance falls due. 

  • Quotes tend to start rising from about 20 days before the renewal date. So, the longer you wait, the more you can expect to pay.
  • On the other hand, don’t renew too early, either – you could add a few hundred pounds to your quote this way.

What can we take from all this? Aim to renew with about three weeks or so to spare if you want to snag a good deal.

How to get cheaper car insurance

If you want cheaper car insurance, you need to shop around for the best deal. Don’t just let your policy auto-renew, and make sure you’re not paying for extra cover you don’t need!

Before you go, here are a few bonus tips to help you save some extra pennies on car insurance: 

  • Consider upping your voluntary excess (if you can afford to).
  • Build your no-claims discount – this can help you save money on car insurance in the long term. 
  • Some insurers offer discounts if you insure more than one car with them. 

And finally, remember that some cars are cheaper to insure than others. Before buying a new car, check out a few models and compare quotes to see how much they cost to insure.

Could you be rewarded for your everyday spending?

Rewards credit cards include schemes that reward you simply for using your credit card. When you spend money on a rewards card you could earn loyalty points, in-store vouchers airmiles, and more. The Motley Fool makes it easy for you to find a card that matches your spending habits so you can get the most value from your rewards.

Was this article helpful?

Some offers on The Motley Fool UK site are from our partners — it’s how we make money and keep this site going. But does that impact our ratings? Nope. Our commitment is to you. If a product isn’t any good, our rating will reflect that, or we won’t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard, and Tesco.